Lofty ambitions
New York’s loft-style housing has found a new home on the outskirts of Ashrafieh. Har Properties, headed by Philippe Tabet, launched on July 21 their new residential development U Park, which sits upon a 3,000 square meter (sqm) plot in the Jisr El Wati area, and will boast 63 apartments on nine levels. Tabet told Executive on the sidelines of the launching, “when we bought the plot, we bought it next to another project (Factory by Bear real estate) and their concept was New York style lofts of brick and metallic. We took the same architect of that project [Charles Hadife]… but we added high ceilings and lots of green space and open spaces.” Though Tabet believes Har is “one of the last developers to buy in this area because the price of land is too high,” the group has maximized utilization of the space by including private gardens of 2,500 sqm, encircled by the complex of apartments that range from 110 sqm to 226 sqm, (90 percent are small apartments) while penthouses range from 194 sqm to 350 sqm. In addition to heavy attention to security, with entrance control systems dictated through videophones in every unit, the firm is aiming for high environmental standards, namely a Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council. Prices start at $3,200 per square meter with construction costs over $1,000 per square meter. Total built-up area is 20,000 square meters, including three underground basements. This is the second residential project for Har, which is also erecting a 20-story building called Aya in Mar Mikhael. Fahd Hariri, son of Lebanon’s late Prime Minister Rafiq Hariri, is a partner in both projects.
Tasty hotel space
Beirut hotels Le Gray and Le Vendome will soon host two of the most savory names in Dubai’s restaurant business, both backed by the same Indian owner, Arjun Waney. La Petite Maison, first opened in Nice and later Dubai in August 2010, will open by the end of 2011 on the first floor of Beirut’s Le Vendome Hotel, as told to HotelierMiddleEast.com by the general manager of its Dubai branch, Cedric Toussaint. Though there have been several business advisors who pushed for a faster Middle East expansion, Toussaint told the website, “many restaurants are opening three in Dubai, three in Beirut, it’s too quick… every year we want to do another, but to do each one properly one after the other one.” Japanese restaurant Zuma, which already has a restaurant in London and has been open for three years in Dubai, will open its third installment in downtown’s Le Gray hotel by the beginning of 2012. In June, Director of Operations for Zuma Middle East, Ajaz Sheikh, said, “Beirut is a vibrant city with a unique energy and it seems fitting to open our second property in the heart of its downtown district.”
Cashing in on Iraq
International construction companies will be largely responsible for building nearly 11,000 homes in the Iraqi city of Karbala, for which the total cost is around $850 million. In the first week of July, Karbala’s Investment Commission (KIC) laid the first bricks for the four housing complexes, with construction contracts awarded to Turkish, Canadian and Chinese firms. KIC’s Media Director Raed al-Asali told independent news agency Aswat al-Iraq that infrastructure such as sewerage, water, communications, electricity, internal roads, hospitals, police stations, markets and malls would be built in parallel with the timeline of the four projects.
Land fracas in Lasa
Members of the Maronite church’s land survey team and an MTV news crew were involved in altercations with the mostly Shia residents of the town of Lasa in Jbeil on July 14 and July 19, reported MTV. In the earlier incident, town residents demanded that the land survey team withdraw, as the Maronite church believes many homes in the area are built on land the church owns, an allegation apparently stemming from 1937. On July 15, Father Chamoun Aoun publically stated that 50 homes are built on church-owned land in the town. The residents later told Now Lebanon in a July 22 article that their issue with the Maronite church officials is that they did not ask for permission from the town’s mukhtar (mayor) before arriving. Following the July 19 incident where an MTV crew says they were attacked and had equipment stolen while filming in the town, a meeting took place on July 20 in Bkirki, where Hezbollah officials represented town residents, and met with members of the Maronite church to create a follow-up committee. Minister of Interior Marwan Charbel told Now Lebanon on July 21 that he did not want the simple real estate dispute to turn into sectarian strife, while Al Jamhouriya, in a July 20 article, quoted “informed sources” who said many Jbeil residents consider Lasa to be a convert military base for Hezbollah and accuse the group of setting up a network of shelters and video cameras to record activities and identities of people in the area.
OCI awarded $450 million infrastructure project in KSA
The largest publically traded firm in Egypt, Orascom Construction Industries (OCI) announced on July 7 that its Saudi Arabian subsidiary, Orascom Saudi Limited Company (OSL), would take on infrastructure work in the kingdom for a contract price of $450 million. The subsidiary would undertake civil, mechanical and electrical works that entail 1.4 million cubic meters of excavation and 2.1 million square meters of roads and walkways. The contract also entails the installation of 146 kilometers of pipes for storm water, waste and potable water systems. Within the two-year construction period OSL will also be responsible for installing electrical substations, which require 238 kilometers of copper cables and trays. OCI Chief Operating Officer Osama Bishai commented, “this contract marks a major step forward in establishing OCI in Saudi Arabia and positions us for further opportunities in the future. We are confident that 2011 will see significant growth in our Saudi Arabian business.” The firm had a 77 percent increase in first quarter profits this year. In July, OCI said the International Finance Corporation (IFC), part of the World Bank Group, is considering to provide $300m in loans to OCI companies and invest $50m directly.
Emaar woes
Emaar Properties, the largest developer in Dubai announced on July 26 a 69 percent drop in profits in the second quarter despite diversifying their development business towards hospitality and retail, and expanding regionally to Syria, Egypt and Morocco. The $68 million profit for the quarter was accompanied by a 23 percent drop in total revenue, as sales in their landmark project, Burj Khalifa, slowed to only 244 units, as opposed to sales of 612 units in the second quarter of 2010. The buffer in terms of sales was in the rental and hospitality sector, which includes Dubai Mall, as the company reported a 24 percent rise in revenue from this part of its business.
